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264
quality fabrics or high fashion goods is concentrated in the largest metropolitan areas .
The various types of agglomeration economies
are not easy to distinguish in practice . Los
Angeles has higher than average employment in
aircraft, in part because aircraft is an urbanoriented industry, in part because there are many
industries in Los Angeles that trade with aircraft,
and in part because of the historical influence of
localisation economies . In general, localisation
economies tend to heighten the influence of urbanisation economies, rather than cancel them out .
Thus, an activity may be found not evenly spread
among the large cities, but highly concentrated
in the few cities where the activity got started .
Basic methodology and data
There already is a large body of research on
the localisation, clustering and urbanisation of
firms, which points the way for our own work .
Geographers have pointed out patterns of localisation (Nelson, 1955 ; Alexandersson, 1956 ;
Murphy, 1966) . Economists have speculated
about agglomeration effects, but have tended to
concentrate their work at the state or regional
level (Perloff et al., 1960 ; Fuchs, 1962) . Other
economists have tried to measure agglomeration
economies (Rocca, 1970 ; Gordon, 1971 ; Shefer,
1971), while others have formulated planning
models that include agglomeration effects (Isard
et al., 1959) . Richter (1969) and Streit (1969)
have studied clustering in manufacturing, without considering interaction with service and
other supporting industries . Most recently,
Stanback and Knight (1970) have described how
employment shares in highly aggregated sectors
vary with city size, and how some of these sectors
exhibit common locational patterns .
The work reported in this paper differs from
most earlier work in two important ways : better
data, and absence of a priori restrictions on
clustering behaviour.
The Standard Industrial Classification (SIC)
groups activities without regard to locational
behaviour . Any SIC group, therefore, may contain two or more activities that have different
265
t For New York and Chicago, the Standard Consolidated Areas are used (aggregatioti,(bf the central
SMSA with one or more contiguous SMSAs) . For several New England cities, where SMSAs
are defined on a township rather than a county basis, we have used Metropolitan State Economic
Areas which are based on counties . Throughout this paper, we sometimes use the word 'city'
to describe metropolitan areas.
2 There are several other measures of industrial association, the best known of which is P . Sargant
Florence's 'coefficient of geographic association' (1943) . The superiority of the simple correlalation coefficient has been pointed out by McCarty (1956) and Richter (1969) .
2 66
with more general techniques such as the Automatic Interaction Detector (Sonquist and Morgan, 1964), which does not require any prior
specification of functional form. It turned out
that, because of the non-normality of the raw
data, the analyses based on linear correlations
between total and per capita employment
respectively had already revealed virtually all of
the clustering that the non-linear methods
showed. However, the rank-order analysis was
of some use in describing higher-order aggregations of the clusters revealed by the simple correlation coefficients .
To sum up, the results reported in this paper
are based on three factor analyses . Individualistic structures of larger cities were described by
analysis of residuals of regressions of employment on population. This analysis also revealed
a number of more common clusters . Additional
clusters, especially those appearing in smaller
cities, were taken from factor analysis based on
per capita employment . Factor analysis based on
rank-order correlations between per capita
employment described aggregations of the more
detailed clusters, and also showed how outlying
observations affected the other analyses .
Results : The Nature of Agglomerations
Our results show that clustering is an important characteristic of the locations of economic
activities in the present-day urban United States .
The patterns of these agglomerations, however,
are complex, and the clusters are not so sharply
defined that all the details of any precise description are obvious . We present our results,
therefore, as one possible way to describe a complex aspect of the world. The basic characteristics we describe are clear and unequivocal, but
the details are open to different interpretations .
The first results to be described are the individualistic economic structures of each of eight
cities . Next, we describe a few of the several
267
3 The square of the factor loading is equal to the locational variance explained by the factor, as a
ratio to the total variance . Thus, for the particular formulation used here, the `New York' factor
explains from 50 to 95 % of the locational variance of the residuals in 25 of the activities just
mentioned and from 10 to 50 % of roughly 25 more .
268
excl.
731
274
279
84
283
50
44
226
319
72
399
316
64
48
63
225
384
364
391
86
232
333
264
387
289
76,
excl .
Name
Loading
0. 983
0972
0. 966
0. 952
0946
0 . 946
0. 945
0 .936
0927
0 .924
0 .912
0 .909
0 .893
0 .883
0 .878
0877
0727
Miscellaneous publishing
Printing trade services
Museums, botanical, zoological gardens
Drugs
Wholesale trade
Water transportation
Textile finishing, except wool
Leather goods, N .E .C .
Personal services
Miscellaneous manufactures II
Luggage
Insurance agents, brokers and service
Communication
Insurance carriers
Knitting mills
Medical instruments and supplies
Electric lighting and wiring equipment
Jewellery, silverware and plated ware
Non-profit membership organisations
Mens' and boys' furnishings
Primary non-ferrous metals
Miscellaneous converted paper products
Watches, clocks and watchcases
Miscellaneous chemical products
0 .718
0 . 701
0. 697
0681
0 . 678
0. 676
0661
0 . 659
0658
0. 653
0648
0 . 365
0. 356
0869
0856
0 . 814
0 . 813
0 . 760
0731
0 .727
0629
0. 596
0591
0589
0. 579
0. 558
0. 550
0. 517
0. 471
0. 430
0 . 403
0. 391
0. 367
769
269
Table 1-continued
(B) Least Important Activities
SIC
Name
42
Trucking and warehousing
202
Dairy products
61
Non-bank credit agencies
327
Concrete, gypsum and plaster products
359
Miscellaneous machinery, except electrical
332
Iron and steel foundries
331
Steel
354
Metalworking machinery
299
Miscellaneous petroleum and coal products
339
Miscellaneous primary metal products
344
Fabricated structural metal products
203
Canned, cured and frozen foods
345
Screw machine products, bolts, etc.
356
General industrial machinery
382
Mechanical measuring and control devices
349
Miscellaneous fabricated metal products
346
Metal stampings
371
Motor vehicles and equipment
07
08
Agricultural services, forestry and fisheries
09
325
Structural clay products
379
Miscellaneous transportation equipment
40
Railroad transportation
374
Railroad equipment
19
Ordnance
Automobile repair and rental
75
322
Glass and glassware, pressed or blown
Grain mill products
204
Loading
-0.746
-0. 617
-0. 607
-0568
-0. 517
-0 . 505
-0 .490
-0. 466
-0 . 453
-0 .450
-0 .436
-0424
-0 .415
-0 .400
-0394
-0 . 393
-0 . 386
-0 . 385
-0 . 383
--0 . 38!
-0 .366
-0 . 365
-0-362
-0-359
-0. 353
-0. 345
-0-344
270
Table 2
SINGULAR STRUCTURE : CHICAGO
Loading
0. 881
0. 860
0. 854
0816
0 . 806
0. 789
0 . 770
0. 736
0 . 724
0-722
0-718
0. 717
0. 704
0. 685
0. 671
0. 667
0 . 626
0-608
0. 591
0. 590
0. 582
0. 576
0. 570
0. 539
0. 537
0. 519
0 . 515
0-515
0. 491
0. 480
0 .466
0. 459
0442
0. 433
0. 423
0-421
0. 418
0. 411
0. 407
0 . 400
0-397
0 . 384
0-376
0-374
0 . 370
0. 363
-0-480
-0 . 387
-0 . 366
-0. 364
-0. 336
SINGuLAR
Table 3
Sraucruity Los
ANGELES
sic
Name
Motion pictures
Nonclassifiable establishments
Ordnance
Miscellaneous transportation equipment
Automobile repair and rental
Household furniture
Aircraft
Miscellaneous services
78
99
19
379
75
251
372
89
76,
excl .
769
61
48
359
73
c. 1 .
731
52-59
769
15
16
17
249
79
07
08
09
347
Loading
0. 914
0. 859
0.789
0.779
0 .688
0 .668
0 .633
0 .609
0.603
0. 591
0. 565
0. 548
0. 515
Retail trade
Miscellaneous repair services
0. 514
0.494
Construction
0.460
0.400
0.353
0.345
0 .344
-0 .567
_0.406
-0 .398
-0 .376
-0.354
-0.348
-0.344
sic
313
314
93
311
302
82
80
229
367
381
223
271
277
306
41
355
207
328
1 8
Name
Footwear cut stock .
Footwear, except rubber
Local government
Leather tanning and finishing
Rubber footwear
Educational services
Medical services
Miscellaneous textile goods
Electronic components
Scientific instruments
Weaving and finishing mills, wool
Newspapers
Greeting card publishing
Fabricated rubber products, N.E.C.
Local and interurban passenger transit
Special industry machinery
Confectionery
Cut stone and stone products
Loading
0-905
0. 889
0. 871
0 .850
0 .781
0 .735
0 .685
0.685
0 .511
0.504
0-456
0.408
0.401
0. 401
0. 401
0.377
0. 354
0-339
272
231
299
225
227
312
382
202
282
232
228
205
361
66
Name
Loading
0. 710
0 . 610
0. 507
0. 502
0.458
0 .447
0-431
0 .407
0 .405
0 . 392
0 . 380
0 .341
0 .339
209
-0. 380
Table 6
SINGULAR STRUCTURE : WASHINGTON, D.C .
91
86
15
16
17
82
271
Federal government
Non-profit membership organisations
0 .847
0 .676
Construction
0 . 398
Educational services
Newspapers
0 .371
0-359
371
354
-0 .382
-0-356
-0.355
273
Table 7
SINGULAR STRUCTURE : MILWAUKEE
375
362
351
208
339
353
315
332
Name
Loading
0816
0 . 779
0686
0 . 579
0493
0 .479
0 .419
0419
Table 8
SINGULAR STRUCTURE : AKRON
301
303
306
344
Name
Loading
0 . 925
0. 911
0. 703
0 . 335
274
sic
73,
excl.
731
81
89
65
50
60
64
731
63
72
15
16
17
86
61
41
75
52-59
275
62
279
45
271
82
78
76,
excl .
769
Name
Loading
0. 780
Legal services
Miscellaneous services
Real estate
Wholesale trade
Banking
Insurance agents, brokers and service
Advertising
Insurance carriers
Personal services
0 . 752
0 .745
0. 733
0.699
0 . 686
0 . 651
0 . 639
0603
0. 578
Construction
0 .561
0 . 537
0 .530
0 -526
0 .509
0 .505
0. 412
0. 409
0 .396
0.395
0. 374
0. 355
0. 355
0. 349
0 . 340
1 8 r
275
components manufacturing to associate somewhat with the shoe/textile cluster . This is true
not only in Boston but in Manchester (New
Hampshire), Providence, Brockton, Lewiston
and elsewhere in New England . Again, we
might speculate that components manufacturers
have been attracted to the cheap, factory-trained
labour that a declining shoe industry has been
releasing .
Another cluster that appears quite consistently
is composed of hotels and recreation services .
Also associated with this cluster, although not to
the same degree in every factor analysis, are
retail trade, personal services and air transportation, along with a group of activities generally
associated with rapid population growthconstruction, concrete and real estate . Needless
to say, this cluster is most important in resort
cities, such as Miami, Las Vegas, Reno, Atlantic
City (New Jersey) and Phoenix (Arizona) .
Many of our 186 industries are not clear and
unequivocal members of one and only one
cluster. This should not be surprising . Most
industries are subject to a variety of locational
forces . Some textile firms seek out low-wage
labour in the South ; others are bound by inertia
to New England locations . The metal can industry locates partly in places where the food
canning industry is important, partly in certain
smaller cities that are centres of metalworking
and machine building, and disproportionately
(18% of nationwide urban employment) in
Chicago. This variety of locational patterns
makes it impossible to describe completely the
industry's locational behaviour by placing it in
one well-defined industrial cluster .
A cluster of metalworking and machine building industries, composed of screw machine
products (nuts and bolts), cutlery, metalworking
machinery, general industrial machinery, industrial leather belting, mechanical measuring
instruments, metal cans, and special industry
machinery, is a close approximation to the metalworking complex which is often mentioned as a
possible industrial base for growth centres .
Employment in these industries makes up an
important part of the economies of Rockford
2 76
Table 10
IoW
SIC
212
233
395
236
238
4
WAOEIAPPAREL CLUSTER
Name
Cigars
Women's and misses' outerwear
Pens, pencils, office and art supplies
Children's outerwear
Miscellaneous apparel
Loading
0. 832
0. 745
0-666
0-444
0-334
The manufacturing belt is a group of contiguous counties characterised by high value added in
manufacturing. The belt covers most of the states of Massachusetts, Connecticut, Rhode Island,
New York, New Jersey, Pennsylvania, Maryland, Ohio, Michigan, Indiana, and Illinois and parts
of Maine, New Hampshire, Delaware, West Virginia, Iowa and Wisconsin (Pred, 1965) .
An association was found among three members of the electrical goods industry : electric test
and distributing equipment, communication
equipment and electronic components. Cities
specialising in these activities include Pittsfield
(Massachusetts), Springfield (Illinois), Lynchburg (Virginia) and Anaheim (California) .
Specialisation in these industries shows less
correlation with office machines and computers,
and very little correlation with specialisation in
other electrical products, such as radio and
television receivers.
The richness of information revealed by the
various factor analyses, and some of the difficulties of interpretation, can be seen by examining the patterns of employment in the steel
industry. Steel employment is most highly
concentrated in Pittsburgh and Chicago, each of
which has over 15% of national employment in
the industry . The cities most specialised in
making steel, however, are mainly smaller
places, such as Steubenville and Youngstown
(Ohio) and Gadsden (Alabama) . This specialisation is often accompanied by a specialisation in
the manufacture of pottery and ceramic products, which include such steel-using items as
Table 11
LABOUR INTENSIVE CLUSTER
SIC
398
235
387
329
334
236
367
234
Name
Miscellaneous manufactures I
Hats, caps and millinery
Watches, clocks and watchcases
Miscellaneous non-metallic mineral products
Secondary non-ferrous metals
Children's outerwear
Electronic components
Women's and children's undergarments
Loading
0 . 846
0. 713
0 .609
0.534
0. 524
0. 509
0.442
0. 435
Table 12
SOUTHERN TEXTILE CLUSTER
SIC
222
226
221
227
236
355
234
232
277
Name
Loading
0 .900
0 . 800
0 . 707
0 . 599
0451
0. 393
0. 339
0. 337
278
On this more aggregate level, the most important cluster consists of manufacturing activities ; metal products, machinery and equipment
and precision instruments are the outstanding
groups . The second most important cluster is
the market-centre group, and the third is a
textile-clothing agglomeration . Other clusters,
which are less important than the first three, are
a group of food products excluding food canning,
petroleum/chemicals/port activities, wood products, food canning, tobacco products, and
paper products . Although these groups can be
described in terms similar to one- and two-digit
SIC groups, they are only rough approximations
of the SIC . Even at this level it is possible to
construct a classification in which each group is
far more locationally homogeneous than is the
SIC.
Results : Mutually Exclusive Clusters
Industrial clusters, which the factor analyses
help us to define, are to be used in two different
ways in subsequent research. One use is to
analyse clustering as such : What are the nature
of industrial agglomerations, and what forces
link the agglomerating activities? The other use
is as a description of the whole urban economic
structure, for analysis of that structure. We will
test hypotheses about what characterises a city
that has a given concentration of certain activities, and the clusters should serve as dependent
variables in that analysis .
These two uses of the clusters do not have the
same requirements . The principal conflict is
whether the clusters should be mutually exclusive groups of activities . The regression
models mentioned above would be much more
useful if the dependent variables could be `added
up' to form a total description of a city's economic structure . This requires that each activity
be put into one, and only one, cluster . However,
some activities have more-or-less equally strong
links to more than one cluster . For analysing
agglomerative behaviour, such activities should
be included in all relevant clusters ; for the forthcoming regression analysis, we have decided to
279
Whatever level of aggregation we choose, the activities in each of our clusters will be far more
similar in their locational behaviour than the activities at a comparable level of aggregation in an
SIC sector.
In making the mutually exclusive clusters, we first left each activity in the factor on ) ch it had the
highest loading. Three modifications were then made : (1) An activity with a loading greater than
0. 33 on more than one factor was defined to be a separate cluster . This eliminated activities from
a particular cluster if any other factor accounted for as much as 10% (0. 332) of its variance. (2)
Certain activities which loaded highest on a factor where no other activity loaded highest were
assigned to the cluster where they had their second-highest loading, providing that the secondhighest loading was at least 0. 33. (3) Two clusters containing disparate types of activities with
similar locational patterns were each split into two .
"SO
281
Table 13-continued
Cluster 7 : Miscellaneous Intermediates I
329
(0. 99)
Miscellaneous non-metallic mineral products (asbestos products, abrasives, mineral wool insulation)
(042)
334
Secondary non-ferrous metals
Highest per capita employment in : Albany, N .Y. ; Lancaster, Pa . ; Worcester, Mass . ; Trenton, N .J . ; Buffalo, N .Y .
Cluster 9: Machinery
(0 . 33)
347
Miscellaneous metal services (plating, coating, polishing)
(0 .42)
362
Electrical industrial apparatus (electric motors, welding apparatus)
Motor vehicles and equipment (including buses, trucks and truck trailers)
(0 .98)
371
Highest per capita employment in : Flint, Mich . ; Muncie, Ind . ; Lima, Ohio ; Ann Arbor, Mich . ; Fort Wayne, Ind .
Cluster 10 : Chemicals
(0. 99)
282
Plastic materials and synthetics (synthetic rubber and fibres)
(0. 47)
286
Gum and wood chemicals (charcoal, turpentine)
Highest per capita employment in : Asheville, N.C . ; Pensacola, Fla. ; Richmond, Va. ; Chattanooga, Tenn. ; Beaumont,
Tex.
Cluster 11 : Petroleum/Chemicals
(0. 88)
281
Industrial organic and inorganic chemicals
(0. 85)
291
Petroleum refining
(0 . 30)
299
Miscellaneous petroleum and coal products (lubricating oils, fuel briquettes)
Highest per capita employment in : Beaumont, Tex. ; Lake Charles, La . ; Galveston, Tex. ; Charleston, W.Va. ; Baton
Rouge, La. ; Wilmington, Del.
282
Table 13-continued
Cluster 14: Appliances and Furniture
(0 . 87)
251
Household furniture
(0-87)
363
Household appliances
Highest per capita employment in : Fort Smith, Ark. ; Evansville, Ind. ; Grand Rapids, Mich . ; Umisville, Ky . ; Lynchburg, Va . ; Greensboro, N.C .
Cluster 15 : Quarries
(0 . 96)
324
Hydraulic cement
(0. 58)
328
Cut stone and stone products
Highest per capita employment in : Allentown, Pa. ; Knoxville, Tenn . ; Bakersfield, Ca. ; San Bernard ino, Ca. ; Bay City,
Mich.
283
Table 13-continued
Cluster 21 : Shoes, etc .
(0. 78)
223
Weaving and finishing mills, wool
(0 . 89)
313
Footwear cut stock (soles, uppers, buckles)
(0. 99)
314
Footwear, except rubber
Highest per capita employment in : Lewiston, Me. ; Manchester, N.H . ; Brockton, Mass . ; Binghampton, N.Y. : Portland,
Me.
284
(0. 58)
274
Miscellaneous publishing (maps, catalogues)
(070)
276
'danifold business forms (sales books)
(0-70)
27S
Blankbooks and bookbinding (checkbooks, looseleaf binders)
(0. 69)
279
Printing trade services (typesetting, photoengraving)
Highest per capita employment in : Springfield, Mass . ; York, Pa . ; Dayton, Ohio ; Terre Haute, Ind . ; Topeka, Kans . :
Chicago, Ill . ; Dallas, Tex . : New York, N.Y.
Cluster 28: Low Wage I
(0-99)
228
Yarn and thread mills
(0-34)
261
Pulp mills
(0-40)
319
Leather goods, N .E .C . (holsters, leashes)
Highest per capita employment in : Albany, Ga. ; Chattanooga, Tenn. ; Macon, Ga . ; Columbus, Ga . ; Providence, R .I . :
Scranton, Pa .
Cluster 29 : Low Wage II
(0-63)
212
Cigars
231
Men's and boys' suits and coats
(058)
(0-96)
233
Women's and misses' outerwear (dresses, coats)
(0 . 58)
395
Pens, pencils, office and art supplies
Highest per capita employment in : Wilkes-Barre, Pa . ; Scranton, Pa. ; Fall River, Mass . ; Allentown, Pa . ; York, Pa . ;
Atlantic City, N .J . ; New York, N.Y.
Cluster 30 : Miscellaneous I
(060)
2 53
Public building furniture (church pews, bleachers, school furniture)
(0-93)
283
Drugs
(0-63)
393
Musical instruments
Highest per capita employment in : Kalamazoo, Mich . ; Indianapolis, Ind . ; New London, Conn . ; Richmond, Va . ;
Grand Rapids, Mich .
Cluster 31 : Miscellaneous I/
(0-67)
307
Miscellaneous plastic products (plastic hose, plastic bowls)
(0-78)
358
Service industry machines (vending, refrigeration equipment, commercial laundry equipment)
(061)
365
Radio and television receivers
Highest per capita employment in : Syracuse, N .Y . ; Evansville, Ind . ; Trenton, N .J . ; Scranton, Pa. ; York, Pa .
Cluster 32 : Miscellaneous III
(0. 56)
(0.99)
315
352
381
Cluster 33 : Miscellaneous IV
(0 . 84)
273
Books (publishing and printing)
(0 .69)
284
Soap, cleaners, toilet goods (perfume, polishes)
(0-56)
311
Leather tanning and finishing
(0-74)
343
Plumbing and heating apparatus
Highest per capita employment in : Racine, Wise . ; Lorain-Elyria, Ohio ; Grand Rapids, Mich . ; Louisville, Ky . ; Binghampton, N .Y.
285
Table 13-continued
Cluster 34: Miscellaneous V
(0-90)
287
Agricultural chemicals (fertiliser, insecticides)
(0 . 64)
295
Paving and roofing materials (asphalt paving mixtures)
Highest per capita employment in : Savannah, Ga . ; Charleston, S.C . ; Albany, Ga. ; Tampa, Fla . ; Norfolk, Va .
286
Table 13-continued
Cluster 38: Ports
(0. 85)
373
(0. 85)
44
(0. 46)
47
Highest per capita
287
Table 13-continued
Independent Industries : -Few Locations
19
Ordnance
252
Office furniture (wood and metal)
333
Primary non-ferrous metals
Non-ferrous rolling and drawing (copper wire, aluminium foil)
335
372
Aircraft
374
Railroad equipment
375
Motorcycles and bicycles
379
Miscellaneous transportation equipment (mobile homes)
399
Miscellaneous manufactures U (signs and advertising displays, tobacco pipes, umbrellas)
Administrative and auxiliary-manufacturing
Conclusion
We have seen that highly disaggregated data,
and units of observation (SMSAs) which
roughly approximate local market areas, permit
us to discern important similarities in the
locational patterns of groups of industries.
Often this `clustering' occurs among industries
in widely separated sectors of the Standard
Industrial Classification .
The structure of this clustering is complex .
First, all clustering is not mutually exclusive.
Although many activities are clearly associated
with one and only one cluster, many others are
not. Therefore, any mutually exclusive description does some violence to the more complex
reality.
Moreover, there do not seem to be any
`natural' levels of aggregation . We have not
exhaustively tested all possible levels of aggregation, but we have tested many different methodologies and arrived at clustering at several different
levels, and all of these levels seem to make sense .
We conclude that the analyst may choose the
t 5
ALEXANDERSSON, G.
Press .
CHINITZ, B. (1961). Contrasts in Agglomeration : New
288
Acknowledgements. This is a revised version of a paper presented at the Resources for the FutureUniversity of Glasgow Conference on Economic Research Relevant to the Formulation of National
Urban Development Strategies, Glasgow, Scotland, August 30-September 3 1971 . The research was
supported by funds from the U .S . Department of Housing and Urban Development . The views in
this paper are those of the authors and do not necessarily reflect those of The Urban Institute or its
sponsors.
The authors gratefully acknowledge the advice and comments of William Alonso, Brian Berry,
Benjamin Chinitz, and Thomas Vietorisz, and the assistance of Andreas Andrikopoulos and WinStanley Luke.